Community Reinvestment Act (CRA)

The Community Reinvestment Act of 1977 (CRA) provides a framework for financial institutions, state and local governments, and community organizations to jointly promote banking services to all members of a community. In a nutshell, the CRA

Prohibits redlining (denying or increasing the cost of banking to residents of racially defined neighborhoods), and

Encourages efforts to meet the credit needs of all community members, including residents of low- and moderate-income neighborhoods.